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Check your access protection policies setting - sounds like it's a policy protecting the temp internet folder being written to.
the access protection logfile ( right click on access prot in vse console choose log) will shows the exact rule and files you are breaking, you can then create an exemption.
Thanks for the suggestions guys. I took a look at the Access Protection log but it didn't actually list anything related to Adobe reader but perhaps my logging isn't working properly. I did spot some older entries relating to other processes which sounded like they might be the culprit however.
In the end it turned out to be the following setting that was causing it:
Anti-virus Maximum Protection:Protect cached files from password and email address stealers